Market Faces Intense Selling Pressure – What’s Next?

The S&P BSE Sensex has witnessed a sharp decline, falling below the 74,000 mark. Persistent selling pressure across key sectors has intensified, raising concerns with further downside movement seeming highly likely. The big question remains: Is this a buying opportunity or will the downturn continue?

Why Is Sensex Falling?

The Sensex downturn is being driven by a mix of global and domestic headwinds, like Foreign Institutional Investors (FIIs) pulling out funds, adding pressure to an already fragile market.

Global uncertainty, particularly weak sentiment in US markets, has further dampened investor confidence in India, making equities less appealing. Meanwhile, key sectors like banking, IT, and auto have also fallen, amplifying the selling pressure.

Adding to the unease are interest rate concerns, with expectations that higher rates will persist, pushing investors toward safer assets and reducing risk appetite. Although the market correction has been severe, certain analysts identify a positive aspect, highlighting essential technical thresholds that might lead to a brief recovery if purchasers enter at the opportune time.

Sensex Chart Analysis: Key Levels to Watch

Support Levels:

• 73,198 – Immediate support.
• 71,901 – Critical level
• 70,294 – psychological support

Resistance Levels:

• 74,296 – The first hurdle for any short-term recovery.
• 75,685 – A breakout above this level will signal renewed bullish strength.

What’s Next for Sensex?

With the RSI signaling oversold conditions, a technical rebound could be possible in the near term. However, the broader trend remains weak, and further downside cannot be ruled out if global sentiment remains cautious and FIIs continue to sell.

Investors should closely monitor key support and resistance levels, along with macroeconomic developments, to determine the next market direction.